The Licorice Root Market size was estimated at USD 220 million in 2023 and is projected to reach USD 400 million by 2030, exhibiting a compound annual growth rate (CAGR) of 9.00% during the forecast period (2024-2030).

Licorice Root Market

Market Summary

The licorice root market is a significant segment within the global food and beverages industry, primarily driven by its extensive use as a natural sweetener and flavoring agent. Licorice root, derived from the Glycyrrhiza glabra plant, is valued for its distinct sweet taste and functional properties, making it a popular ingredient in confectionery, pharmaceuticals, and herbal supplements. The market is characterized by a steady demand from both traditional and modern applications, with increasing consumer preference for natural and plant-based products fueling growth. Key producing regions include Asia Pacific, particularly China and India, alongside notable contributions from Europe and the Middle East. The market operates through a well-established supply chain involving cultivators, processors, distributors, and end-users, with quality and sustainability becoming critical factors influencing procurement decisions. Businesses are focusing on organic and ethically sourced licorice to meet regulatory standards and consumer expectations, positioning the market for sustained expansion amid evolving industry dynamics.

Key Highlights

The licorice root market showcases several key highlights that underscore its importance and growth trajectory. One prominent aspect is its versatility, as licorice extract is utilized not only in food and beverages but also in tobacco, cosmetics, and traditional medicine, broadening its commercial appeal. The natural sweetening property of glycyrrhizin, which is significantly sweeter than sucrose, allows for reduced sugar content in products, aligning with health-conscious trends and regulatory pressures against high-sugar diets. Additionally, the market benefits from robust research and development activities aimed at enhancing extraction techniques and expanding application scopes, such as in functional foods and nutraceuticals. Leading companies are investing in sustainable farming practices and quality certifications to ensure product consistency and meet international standards. The rising incidence of digestive and respiratory ailments is also propelling demand for licorice-based remedies, further solidifying its position in both consumer and industrial sectors. These factors collectively highlight the market's resilience and potential for innovation-driven growth.

Drivers, Opportunities & Restraints

Several drivers are propelling the licorice root market forward, including the growing consumer inclination towards natural and organic ingredients in food and beverage products. Health benefits associated with licorice, such as its anti-inflammatory and antioxidant properties, are encouraging its incorporation into functional foods and dietary supplements. The expansion of the confectionery industry, particularly in emerging economies, is another significant driver, as licorice remains a staple flavor in candies, gums, and beverages. Opportunities abound in the development of innovative applications, such as licorice-infused health drinks and skincare products, leveraging its medicinal and soothing characteristics. However, the market faces restraints like regulatory challenges concerning glycyrrhizin consumption limits due to potential health risks such as hypertension and potassium depletion when consumed in excess. Supply chain vulnerabilities, including climate-dependent cultivation and geopolitical factors affecting raw material sourcing, also pose challenges. Despite these restraints, strategic investments in sustainable agriculture and product diversification present lucrative pathways for market players.

Concentration Insights

The licorice root market exhibits a concentrated landscape with a mix of large multinational corporations and specialized regional players dominating the supply chain. Key companies such as MAFCO Worldwide, Norevo, and Zagros Licorice have established strong footholds through extensive distribution networks and product portfolios. These players often engage in vertical integration, controlling aspects from cultivation to processing, which enhances their market stability and quality assurance. Geographically, production is concentrated in regions with favorable climatic conditions, such as China, Iran, Afghanistan, and Turkey, which are major exporters of raw and processed licorice. The market also sees significant concentration in end-use sectors, with the food and beverage industry accounting for a substantial share of demand, followed by pharmaceuticals and cosmetics. This concentration necessitates strategic partnerships and mergers among companies to consolidate market presence and expand geographic reach. Additionally, regulatory frameworks in importing regions like North America and Europe influence market dynamics, prompting adherence to stringent quality and safety standards.

Type Insights

In the licorice root market, products are primarily categorized based on form and extraction type, including dried roots, extracts, powders, and blocks. Licorice extract, available in various concentrations such as standard extract and high-purity glycyrrhizin, is the most prevalent type due to its widespread application in food flavoring and pharmaceutical formulations. The extract segment dominates owing to its convenience, longer shelf life, and enhanced functional properties compared to raw roots. Powdered licorice is gaining traction for its ease of integration into dietary supplements and instant beverage mixes, catering to the growing demand for health-oriented products. Additionally, block forms are utilized in traditional practices and industrial processing. The choice of type often depends on end-use requirements; for instance, the food industry prefers extracts for consistent flavor profiles, while herbal medicine sectors may opt for whole or cut roots. Innovations in processing technologies are enabling the development of customized extracts with specific glycyrrhizin content, meeting diverse industry needs and regulatory guidelines across different regions.

Application Insights

Licorice root finds diverse applications across multiple industries, with the food and beverage sector being the largest consumer. It is extensively used as a natural sweetener and flavor enhancer in confectionery products like candies, chocolates, and chewing gums, as well as in beverages such as teas, soft drinks, and alcoholic liquors. The pharmaceutical industry leverages licorice for its therapeutic properties, incorporating it into cough syrups, lozenges, and digestive aids due to its demulcent and expectorant qualities. In the cosmetics and personal care arena, licorice extract is valued for its skin-lightening and anti-irritant effects, appearing in creams, lotions, and oral hygiene products. The tobacco industry also utilizes licorice to improve flavor and moisture retention in tobacco products. Emerging applications include animal feed additives and organic pesticides, highlighting its versatility. The broadening scope of applications is driving innovation, with companies exploring niche segments like sports nutrition and aromatherapy to capitalize on licorice's multifunctional benefits.

Regional Insights

Regionally, the licorice root market is segmented into key areas including Asia Pacific, Europe, North America, and the Rest of the World. Asia Pacific holds a dominant position, both as a major producer and consumer, with countries like China, India, and Iran leading cultivation and export activities. This region benefits from traditional usage in Ayurvedic and Chinese medicine, coupled with a robust food processing industry. Europe follows closely, driven by high demand from the confectionery and pharmaceutical sectors, particularly in Germany, France, and the UK, where natural ingredients are highly prioritized. North America shows steady growth, fueled by health trends and the adoption of herbal supplements, though regulatory scrutiny on glycyrrhizin content moderates expansion. The Middle East and Africa contribute through production hubs like Afghanistan and Turkey, while also exhibiting growing domestic consumption. Regional disparities in regulatory standards and consumer preferences shape market strategies, with companies tailoring products to meet local demands and compliance requirements, ensuring sustained regional engagement and growth opportunities.

Company Insights

The competitive landscape of the licorice root market features prominent companies such as MAFCO Worldwide, Norevo GmbH, Zagros Licorice Co., FandC Licorice, and VPL Chemicals. These players focus on strengthening their market position through strategies like capacity expansion, product innovation, and geographic diversification. MAFCO Worldwide, for instance, is renowned for its high-quality licorice extracts and derivatives, catering to global food and pharmaceutical clients. Norevo emphasizes organic and sustainably sourced products, aligning with environmental and consumer trends. Zagros Licorice leverages its proximity to raw material sources in the Middle East to ensure supply chain efficiency. Additionally, companies are investing in research to develop application-specific solutions, such as low-glycyrrhizin variants for markets with strict regulations. Partnerships with local farmers and certification bodies are common to guarantee traceability and quality. The presence of these established entities, alongside emerging regional players, creates a dynamic environment where quality, sustainability, and innovation are key differentiators driving competition and market development.

Recent Developments

Recent developments in the licorice root market reflect ongoing efforts to adapt to evolving consumer and regulatory landscapes. Companies are increasingly investing in sustainable farming practices and organic certification to meet the rising demand for ethically sourced ingredients. For example, major players have launched initiatives to support licorice cultivation through agroforestry and water-efficient techniques, addressing environmental concerns. Technological advancements in extraction and purification processes are enabling the production of high-purity glycyrrhizin and tailored extracts for specific applications, enhancing product efficacy and compliance. There has also been a surge in mergers and acquisitions, such as partnerships between licorice processors and food manufacturers to develop innovative products like sugar-free confectionery and functional beverages. Regulatory updates, particularly in Europe and North America regarding glycyrrhizin limits, have prompted reformulations and increased focus on safety studies. Additionally, market entrants are exploring digital platforms for supply chain transparency and direct consumer engagement, highlighting a trend towards modernization and responsiveness in the industry.

Report Segmentation

This market research report on the licorice root market offers a detailed segmentation to provide comprehensive insights for stakeholders. The report is segmented by type, encompassing categories such as licorice root extract, powder, blocks, and whole roots, each analyzed for their market share and growth potential. Application-wise segmentation covers food and beverages, pharmaceuticals, cosmetics and personal care, tobacco, and others, detailing usage patterns and demand dynamics across these sectors. Geographically, the report divides the market into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa, examining regional production, consumption, and trade trends. Further segmentation includes analysis by distribution channel, such as direct sales, distributors, and online retailers, highlighting evolving procurement preferences. The report also delves into quality grades, including organic and conventional licorice, addressing the impact of sustainability trends. This structured approach enables businesses to identify niche opportunities, assess competitive environments, and make informed strategic decisions based on granular market intelligence.

FAQs

What are the health benefits of licorice root? Licorice root is renowned for its anti-inflammatory, antioxidant, and antimicrobial properties. It is commonly used to soothe digestive issues, alleviate respiratory conditions like coughs and sore throats, and support adrenal function. However, excessive consumption should be avoided due to potential side effects such as increased blood pressure.

How is licorice root used in the food industry? In the food industry, licorice root serves as a natural sweetener and flavoring agent. It is extensively utilized in confectionery products including candies, gums, and chocolates, as well as in beverages like teas and soft drinks to impart a distinctive sweet taste and enhance flavor profiles.

What factors are driving the growth of the licorice root market? Key growth drivers include rising consumer preference for natural and plant-based ingredients, increased application in functional foods and pharmaceuticals, and expansion of the confectionery sector. Health trends emphasizing sugar reduction also contribute to its demand as a natural sweetener.

Which regions are major producers of licorice root? Major producers of licorice root are concentrated in Asia Pacific, with China, Iran, and India leading cultivation. Other significant producing regions include the Middle East, such as Afghanistan and Turkey, and parts of Europe like Italy and Spain, where climatic conditions favor growth.

Are there any restrictions on licorice root consumption? Yes, regulatory bodies in regions like Europe and North America have set limits on glycyrrhizin intake due to health risks associated with overconsumption, such as hypertension, hypokalemia, and edema. It is advised to adhere to recommended daily allowances and consult health professionals when using licorice-based products.

Citius Research has developed a research report titled “Licorice Root Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• Licorice Root Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The Licorice Root Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

Licorice Root Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

Licorice Root Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of Licorice Root Market
• Research Methodology
• Executive Summary
• Market Dynamics of Licorice Root Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of Licorice Root Market
• Cost and Gross Margin Analysis of Licorice Root Market
• Licorice Root Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “Licorice Root Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

Licorice Root Market Key Stakeholders

Below are the key stakeholders for the Licorice Root Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

Licorice Root Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Licorice Root Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the Licorice Root Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in Licorice Root Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

Report Customization

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